G20 world leaders have revealed
their communiqué to tackle the global economic crisis. UK Prime Minister
Gordon Brown announced the $1.1 trillion deal as he closed the G20
summit.
Here is a summary of the key
points:
FINANCIAL REGULATION
·
A new
Financial Stability Board, with a strengthened mandate, will replace the
Financial Stability Forum
·
Financial regulation and oversight will be extended to all financial
institutions, instruments and markets
·
This
includes bringing hedge funds within the global regulatory net for the
first time
·
Members are committed to implementing tough new rules on pay and bonuses
at a global level
·
International accounting standards will be set
·
Credit rating agencies will be regulated in order to remove their
conflicts of interest
·
A
common approach to cleaning up banks' toxic assets has been agreed
TAX HAVENS
·
There
will be sanctions against tax havens that do not transfer information on
request
·
The
Organisation for Economic Co-operation and Development has published a
list of countries assessed by the Global Forum against the international
standard for exchange of tax information
INTERNATIONAL MONETARY FUND
·
Resources available to the International Monetary Fund will be trebled
to $750bn
·
This
includes a new overdraft facility, or special drawing rights allocation,
of $250bn
·
Additional resources of $6bn from agreed IMF gold sales will be made
available for lending to the poorest countries
·
The
G20 also supports increased lending to the world's poorest countries of
at least $100bn by the multilateral development banks
GLOBAL TRADE
·
There
will be a commitment of $250bn of support for trade finance made over
the next two years
·
This
will be made available through export credit and investment agencies, as
well as through multilateral development banks
·
National regulators will be asked to make use of available flexibility
in capital requirements for trade finance
PROTECTIONISM
·
The
G20 has pledged to resist protectionism
·
There
will be a commitment to naming and shaming countries that breach free
trade rules
·
The
G20 will notify the World Trade Organization (WTO) of any measures that
constrain worldwide capital flows
·
The
G20 has called on the WTO to monitor and report publicly on these
undertakings on a quarterly basis
FISCAL STIMULUS
·
Although there is no new fiscal stimulus, Gordon Brown said G20
countries are already implementing "the biggest macroeconomic stimulus
the world has ever seen" - an injection of $5tn by the end of next year.
http://news.bbc.co.uk/1/hi/business/7979682.stm
